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Fresnillo reports silver production decline in Q3, maintains its annual guidance

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(Kitco News) - Fresnillo announced Wednesday its Q3 2021 attributable silver production of 12.7 moz (including Silverstream), which was down 15.1% over Q2 2021 mainly driven by the anticipated lower ore grade at San Julián Disseminated Ore Body (DOB) following the exceptional high grades in the previous quarter.

Quarterly attributable silver production (including Silverstream) decreased 4.7% over Q3 2020 due to a lower volume of ore processed and a lower ore grade at Saucito, mitigated by a higher ore grade at San Julián DOB.

The company's quarterly attributable gold production of 172.5 koz was down 13.8% over Q2 2021, primarily due to lower volumes of ore processed and recovery rates at Herradura and Noche Buena as well as a lower volume of ore processed and ore grade at Saucito.

However, quarterly attributable gold production was in line with Q3 2020 as a result of a lower ore grade at Ciénega and San Julián Veins, offset by the good performance at Herradura and Noche Buena.

Quarterly attributable by-product lead and zinc production decreased 20.6% and 17.2% over Q2 2021 respectively, driven primarily by lower ore grades and decreased volumes of ore processed at Saucito.

The company said it remains on track to meet its 2021 full year guidance of 53.5 to 59.5 moz of silver (including Silverstream) and 675 to 725 koz of gold.

“We continue to monitor the possible impact of the labour reform and general shortage of personnel, as well as potential headwinds, in particular inflationary pressures and the average revaluation of the Mexican peso vs US dollar, which may impact costs," the company noted in a statement.

Fresnillo plc is the world's largest primary silver producer and Mexico's largest gold producer, listed on the London and Mexican Stock Exchanges under the symbol FRES.

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